New Jersey would create a state agency to build mixed-income homes

The Direct Development Authority would build, own, and rent or sell mixed-income homes. Income limits would use the regional median—the midpoint—adjusted for household size: below 80% for lower-income households and 80%–120% for middle-income households. Projects would reserve 40%–60% of homes for lower-income households and the rest for middle-income households, with prices or rents meeting affordability rules. The authority would be established immediately upon the bill becoming law.

The state housing finance agency would direct part of its housing tax-credit auction proceeds to the new authority. The money would come from proceeds reserved for middle-income housing and low- and moderate-income housing. The bill does not set a dollar amount or percentage for the authority's share. Project financing subsidies under the amended program would be limited to projects receiving a separate 4% low-income housing tax credit.